Is there heterogeneity in ESG disclosure by mining companies? A comparison of developed and developing countries

ESG disclosures are important to how companies operate legally, reduce the costs of capital, broaden investment channels and are more important to mining companies, given their vulnerability to large, adverse ecological and social impacts. Using panel data from 2011 to 2020, we evaluate the quantity and quality of the ESG disclosures of mining companies and use grey correlation analysis and a regression model to calculate the relationship between ESG disclosure and market value. The results show improvements in the quantity and quality of mining companies' ESG disclosures. Regarding disclosure quantity, although more mining companies in developing countries publish ESG reports, the amount of the content in the reports is lower than that of developed countries. Regarding disclosure quality, the average score and disclosure ratio of the ESG indicators of mining companies in developed countries exceed those of developing countries, and the gap is the largest for E indicators; the disclosure quality by mining companies in developing countries has increased more, and the gap between them has gradually narrowed. The ESG disclosure quality of mining companies in developed countries is more strongly correlated with market value. In developed countries, mining companies' market values have the highest correlation with S disclosures, while in developing countries, mining companies' market values have the highest correlation with E disclosures.